Bakrie Family Could Save Bumi Investors

10/11/2012 9:41AM

An offer by the Bakrie family to buy the shares of Bumi PLC could save initial investors from heavy losses. WSJ's Andrew Peaple looks at scandalous flotation of the Indonesian coal miner and where it leaves Nat Rothschild. Photo: Reuters

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... it does is ... eat he'll see an easy call my company he's the ... it is ... in London ... half way up ... people been falling the story ... and of his dead ahead to unravel and tell us how these events is ... the isthe kit ... solution ... it also faces ... doubts allegiance to ... the story goes but probably is going to a ... group of nurses led by ... Matt Rothschild ... raise about one point two billion dollars from London investors ... at the switch I shall not have children forced into ... the cup living in these in coal mining companies that create basically a coal miner ... that was listed in London ... the idea was to give it ... to the mirror of U K corporate governance same time ... it's been a complete is awesome and I'm afraid ... since the since they are a city buses ... but this is a toss about eight to the report stated lost about eighty five cents the shares has been a lot of corporate governance problems has been a massive pulling out between ... Rothschild and the Indonesians to earn around twenty three percent of the company so ... that's that that grants to say ... what's the news news today is that the Bakri family which of the family of the fallen out with the Rothschilds ... have now offered to buy back of the assets from being a ... leaving do me once again as the shale company for about one point two billion dollars in the defense to get to see this is who faces enormous losses and the sun sun support about some about exactly ... blue but getting back one point two billion maybe from the factories that looks as equal to what was the reason the race by ... a roast all ... the snow quite the simple is that because they've been targeted down since then he says overall and never that simple if they do get the cash that they are looking at around fifty percent loss on their initial investment ... but there's more to it ... and said ... look this is a mean this whole episode has little to just be built on the fact give them that this is another as these five suspects are known to be the sole ... Bumi PLC it's a really ... took the cake ... this capsule has the glory of the of the suspect now ... where is the sexy in that role ... well I think that this sort of ... recap shell structure that he's come up with heat he did it once more with a ... direct the ... oil company called Canal ... that's also a Dow ... the share prices Pullen Cueto quite away since they recently launched a deal ... I don't trust I will have the deals get away with this again ... and the interesting thing about this latest proposal from the back reads is that that the mom thing that crossed wrote cancel his shares ... in creamy so he will even lose out potentially on ... the investment that he had in in in this mining company ... was in studio courses that JPMorgan and Bank of ... old houses houses in the past few years says ... but basically they all signed off and tell us that the prospectus ... all the lawns of Bumi PLC yes ... what is that this is ... well then all ... you know as you'd expect I don't really like to comment on this I think ... um background everyone involved in this is pretty ashamed pretty ... pretty upset some of the way it's worked out ... they clearly everyone was mesmerized by Rothschild the idea of this that you could bring these ... Indonesian coal mining assets to London ... and improve is produced and is a supposedly of ... Raikkonen but not too much more cut yet result as it just wasn't what I'd I'd I think you know you ... people you is calling for more regulation but in this case the reading the regulation the structure itself is ... has something to pieces at some point ... tell us that it's a kind of thinking ...